Yahoo Finance

• Q4 Revenue: TWD29.17 billion, 10% YoY growth.

• Q4 Net Income: TWD3.66 billion, 28% YoY growth.

• Q4 EBITDA: TWD9.38 billion, 15.1% YoY growth.

• Full Year Revenue: TWD104 billion.

• Full Year EBITDA: TWD36.31 billion.

• Full Year Net Income: TWD12.84 billion.

• EPS: TWD3.56, 115% achievement rate compared to guidance.

• Net Debt to EBITDA Ratio: Improved from 1.74x to 1.23x in Q4.

• CapEx: TWD7.09 billion, 13% lower than guidance.

• 5G Penetration: Maintained number one position for postpaid 5G penetration.

• New Economy Revenue Growth: 19% YoY growth in 2024.

• Smart Healthcare Revenue Growth: 24% YoY growth.

• 2025 Revenue Forecast: TWD108.33 billion, 3.5% YoY growth.

• 2025 EPS Forecast: TWD3.63, 2% increase from 2024.

• 2025 CapEx Forecast: TWD8.3 billion.

• Dividend: TWD3.56, 100% payout, 9.5% YoY growth.

• Warning! GuruFocus has detected 6 Warning Sign with TPE:4904.

Release Date: February 20, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Far EasTone Telecommunications Co Ltd (TPE:4904) achieved a 10% year-over-year revenue growth in Q4 2024, reaching TWD29.17 billion.

• The company reported a record high EBITDA of TWD9.38 billion for Q4 2024, marking a 15.1% year-over-year growth.

• Net income for the full year 2024 reached TWD12.84 billion, with an EPS of TWD3.56, surpassing the guidance of TWD3.11.

• The company maintained a low churn rate and achieved the number one position in postpaid 5G penetration.

• Far EasTone's ICT revenue contribution and 5G upgrades continue to drive growth, with a 19% year-over-year growth in new economy margins.

Negative Points

• Despite strong performance, the company's full-year revenue fell slightly short of the TWD105 billion target, achieving TWD104 billion.

• Postpaid ARPU decreased due to the merger, although the trend is improving.

• The CapEx for 2024 was TWD7.09 billion, 13% lower than guidance, partly due to deferred payments and equipment acceptance.

• The anticipated increase in utility costs may offset some of the synergy savings expected in 2025.

• The company's revenue growth forecast for 2025 is 3.5%, significantly lower than the double-digit growth experienced in 2024 due to the merger.

Q & A Highlights

Q: Can you provide an overview of Far EasTone's financial performance for Q4 2024? A: Chee Ching, President, reported that Far EasTone ended 2024 with a strong fourth quarter, achieving a revenue of TWD29.17 billion, marking a 10% year-over-year growth. The net income was TWD3.66 billion, a 28% increase from the previous year. The EBITDA was TWD9.38 billion, a record high for the company, driven by merger synergies and improved margins from core telecom and new economy businesses.